Who is Buying Houses Today?

By Ken Urman, Realtor

The National Association of Realtors conducted a study of recent homebuyers. Here’s who is buying houses (by generation):

·         Gen Y                                                                    31%

·         Gen X                                                                    30%

·         Younger Baby Boomers                                    16%

·         Older Baby Boomers                                         14%

·         The Silent Generation                                          9%

 

Gen Y

·         aged 33 and younger, born between 1980 and 1995

·         76% are first-time home buyers

·         97% financed their home purchase

·         More than 50% used a mobile device in their search

·         About 25% found the home they purchased with a mobile device

·         Find realtors through friends, neighbors, relatives

·         74% said the major value of working with a realtor was understanding the buying process

·         They buy because they want to own a home

·         19% choose urban areas

·         Plan to stay in the home 10 years

·         37% say commuting cost is a major consideration in choosing location

·         About 20% had to delay purchasing a home because of student loan debt

Gen X

·         aged 34 to 48, born between 1965 and 1979

·         More than 50% used a mobile device in their search

·         About 25% found the home they purchased with a mobile device

·         found their real estate agent or broker through the recommendation of a friend, family member or neighbor

·         more likely to use the same real estate agent for their purchase as for the sale of their previous home

·         buying and/or selling a home out of the desire to own a home, because they want or need a larger home, or because they are relocating for a job

·         primary factors influencing their neighborhood choice are the quality of the neighborhood, convenience of the neighborhood to their job(s), and the quality and convenience of schools

·         plan to live in the homes they purchase for 15 years

·         highest income earners ($98,200)

·         largest proportion of married couples buying homes (72 percent)

·         largest group of buyers with children under the age of 18 in the home (67 percent)

·         19% said they were compelled to delay the sale of their previous home because it was worth less than their mortgage

·         15% had difficulty saving for a down-payment, with 46 percent pointing to credit card debt as the reason for the difficulty, and 35 percent pointing to student loan debt as the difficulty.

 

Younger Boomers

·         Aged 49-58, born between 1955 and 1964

·         33% are single

·         22% bought a multi-generational home

o   38% had children over 18 moving back home

o   18% cost savings

o   15% caring for aging parents

·         26% own more than one home (vacation, investment)

·         Plan to live in the home for 20 years

·         21% of recent home sellers

·         Reasons for selling: job relocation, home too large, neighborhood less desirable

·         10% delayed home sale because home was worth less than their mortgage

 

 

Older Boomers

·         Aged 59-67, born between 1946 and 1954

·         21% buy to avoid renovations or repairs of major house systems

·         Choose neighborhoods for convenience to friends and family, affordability, and convenience to shopping

·         27% own more than one home

·         Plan to live in home more than 20 years

·         22% of recent home sales

·         Top reasons to sell: move closer to friends and family, house too big, retirement

·         Most likely to move more than 36 miles; 22% moving to a new region

·         Typically downsizing square footage and cost

 

Silent Generation

·         Aged 68-88, born between 1925 and 1945

·         98% are repeat buyers

·         18% purchased a multi-generational home

o   27% care for aging parents

o   23% children over age 18 moving back in

o   21% cost savings

·         Choose neighborhood for convenience to friends and family, design of the home, proximity to shopping, design of neighborhood, affordability, proximity to health care facilities

·         Smallest percentage finance the purchase

·         Most moving 38 miles away

·         Top reasons to sell: move closer to friends and family, house too big, retirement

·         Typically downsizing square footage and cost

 

If you are considering buying a home, whether a first home, a larger house or a smaller house, I would be pleased to help you find the perfect house to meet your needs. If you are considering selling your home, I would be honored to help you with the sale to the right buyer. Whether buying or selling, I would like to discuss your goals and help you achieve them. Call me today at (206) 230-0833.